What Hospitals & Health Systems Need to Know About the FY22 Budget

On May 28th, 2021, the Biden Administration submitted to Congress its budget request for Fiscal Year 2022. The proposed budget – totaling over $6 trillion – recommends significant increases in funding for health initiatives. McAllister & Quinn has analyzed numerous thematic areas, programs, and initiatives in the President’s budget request. Key funding increases include:

Health Resources and Services Administration (HRSA): $12.6 billion

  • An increase of $496.5 million from the FY21 enacted level.
  • The most significant increase was in Behavioral Workforce Development Programs ($75 million increase for programs such as BHWET, GPE, ISTP and STAR Loan Repayment).
  • An increase of $55 million for the Rural Communities Opioids Response (RCORP)
  • An increase of $47.3 million for the National Health Service Corps (NHSC), which recruits clinicians who demonstrate a commitment to serve the Nation’s medically underserved populations at NHSC-approved sites.
  • An additional $7.5 million for rural health programs.
  • Continued support for telehealth and digital health.

National Institutes of Health (NIH): $52 billion

  • An increase of $9 billion from the FY21 enacted level.
  • The newly created Advanced Research Projects Agency for Health (ARPA-H), which accounts for $6.5 billion of the $9 billion increase in proposed NIH funding, seeks to leverage novel public-private partnerships to support transformative research leading to breakthrough cures for cancer, Alzheimer’s disease, diabetes, and other diseases.

Substance Abuse and Mental Health Services Administration (SAMHSA): $9.7 billion

  • An increase of $750 million from the FY21 enacted level.
  • An increase of $60.5 million for Project AWARE grant programs
  • An increase of $125 million for the CCBHC-Expansion (CCBHC-E) program
  • An increase of $45.724 million for Targeted Capacity Expansion programs
  • An increase of $16.466 million for The Pregnant and Postpartum Women program (PPW)
  • The First Responder Training for Opioid Overdose Reversal Drugs programs received an increase of $21 million.

Agency for Healthcare Research and Quality (AHRQ): $380 million

  • An increase of $42 million from the FY21 enacted level.
  • An increase of $40 million for Research of Health Costs, Quality, and Outcomes (HCQO).
  • An increase of $22.9 million for Health Services Research (HSR) Grants, focused on the following:
    • Investigator-initiated research and training grants.
    • Investigator-initiated HSR grants focused on COVID-19.
    • Investigator-initiated HSR and training grants focused on advancing equity.
    • Opioid research grants that improve health equity and patient experience.
    • Research grants related to primary care.
  • $4.4 million in new Digital Healthcare Research Grants, supporting promising digital healthcare interventions aimed at improving the quality and value of care.

Centers for Disease Control and Prevention (CDC): $9.578 billion

  • An increase of $1.681 billion from the FY21 enacted level.
  • An additional $7.88 million for Enhancing Reviews and Surveillance to Eliminate Maternal Mortality Grants through the CDC.

Important Note: Every year the White House releases a President’s Budget Request (PBR) that is used as a foundation by Congress during the annual appropriations process. The figures and priorities detailed above will undoubtedly change as the House and Senate consider the bills that will fund Federal discretionary programs in FY22. McAllister & Quinn will be releasing subsequent memos and information on congressional spending bills as they move through the FY22 appropriations process.

If you would like more information on the FY22 Budget or how it impacts your institution please contact us here.